TechFlow reported on August 26, citing DL News, that the UK Financial Conduct Authority (FCA) has not approved any cryptocurrency company registration applications for six consecutive months, stalling the country's ambition to become a global hub for crypto asset technology.
According to FCA data, only 4 out of 34 applications received over the past 12 months have been approved, with the most recent approval dating back to February this year. The FCA stated that most crypto firms failed to meet its anti-money laundering standards, emphasizing that companies must be "fit and proper" and have systems in place to identify and prevent the flow of criminal funds.
However, industry lobbyists have complained that the FCA's rules are overly complex and confusing, particularly regarding consumer marketing regulations. Despite this, the FCA is working with firms to help them meet compliance requirements. Against this backdrop of tightening regulation, several companies including Binance and PayPal have suspended their crypto services in the UK.
